Question 5 10 pts Bank Three currently has $850 million in transaction deposits as liabilities on its balance sheet. The Federal Reserve has currently set the reserve requirement at 6 percent of transaction deposits. If the Federal Reserve decreases the reserve requirement to 4 percent, what will Bank Three's reserve at the Federal reserve need to be after taking the multiplier effect into account? Note: Assume Bank Three withdraws all excess reserves and gives out loans and that borrowers eventually return all of these funds to Bank Three in the form of transaction deposits, and find the FINAL reserves after the multiplier effect. $75 million $120 million $34 million $51 million